At&T: One of the Biggest Ipos in the U.S. History

AT&T: One of the Biggest IPOs in U.S. History

Introduction

We may hear a lot about initial public offerings of stock in the news, as companies have recently got headlines with large share price gains in their first day of trading. Initial public offerings may seem exciting. But what are the initial public offerings?

Initial public offering or IPO is a type of public offering where stock shares from a company sold to the public via securities exchange. A private company transforms into public company through this process. IPO is one of the ways by companies to expand their capital and surely to become publicly traded enterprises.

Not only that, the other advantages are to create a type of currency in the form of its stock that business can use to make acquisitions. The company also will have access to capital markets for future financing needs. Furthermore, the company and its management may be able to retain a certain degree in running the business.

Since “Going Public” is an expensive process, thus it requires a careful advance planning in order to achieve a successful IPO. First step is to develop an impressive management and professional team. Second is to grow the company’s business with an eye to the public marketplace. Third, obtain audited or audible financial statements using IPO-accepted accounting principles. Fourth, clean up the company’s act. Fifth, establish antitakeover defenses. Sixth, develop good corporate governance. Last one is to create insider bail-out opportunities and take advantage of IPO windows.

The purpose of this paper is to discuss a company AT&T as one of the biggest IPO in the U.S. I would like to bring up the company overview, the financial news from the year since its IPO released, and the current financial news of stock.

Company Overview

AT&T, formerly known as SBC Communications Inc., was formed as one of several regional holding companies created to hold AT&T Corp.’s (ATTC) local telephone...